Vitec Software Group (VIT) Q3 2025 earnings summary

Executive summary

• Net sales for Jan–Sep 2025 reached SEK 2,650 million, up 10% year-over-year; Q3 net sales were SEK 855 million, up 6% from Q3 2024.

• Recurring revenues accounted for 90% of net sales in Jan–Sep 2025, up from 88% in the prior year, with Q3 recurring revenues up 8% to SEK 773 million.

• Cash EBIT for Jan–Sep 2025 was SEK 589 million, up 5% year-over-year; Q3 cash EBIT was SEK 212 million, up 10%.

• EBITA for Jan–Sep 2025 was SEK 691 million, down 6% year-over-year; Q3 EBITA was SEK 235 million, down 5% from Q3 2024.

• Two acquisitions completed in 2025, expanding into the Netherlands and Poland, with NMG in Poland added post-quarter.

Financial highlights

• Recurring revenues for Q3 2025 were SEK 773 million (up 8%); subscription-based revenues up 18%, transaction-based down 21%.

• EBITA margin for Jan–Sep 2025 was 26% (down from 30%); Q3 margin was 28% (down from 31%).

• Cash flow from operating activities for Jan–Sep 2025 was SEK 1,000 million, up from SEK 939 million year-over-year.

• Earnings per share for Jan–Sep 2025 were SEK 7.56, compared to SEK 8.32 in the prior year.

• Transaction-based revenue down 20% due to Enova's SEK 50 million decline compared to last year.

Outlook and guidance

• Management expects continued stable growth in subscription-based revenues, with ongoing focus on organic growth, complementary acquisitions, and operational improvements.

• Q4 expected to be flattish in cash EBIT compared to Q3, excluding the NMG acquisition.

• Recent acquisition of NMG in Poland expected to immediately increase earnings per share.

• Organic subscription-based recurring revenue growth at 6–7% for the year, with pricing contributing about 3%; pricing impact expected to decrease as CPI trends down.

• M&A headroom remains strong, with net debt/EBITDA at 1.7x and over SEK 1.5 billion available for acquisitions.